Multi Time Frame Analysis

[braveheart2009]

Hi,

 

How do people use the higher timeframes than the one they are trading on to make decisions? I trade the 15 min charts and use the 5 mins to make entries and exits as a day trader, however I only look at the 1/4/daily/weekly/monthly ONLY for trendlines, S&R lines,and MA trends. Should I be using the higher timeframes for anything else indicators work best in higher timeframes RSI, MACD?

[mrrhypon]

Go with volume. I recommend "better volume 1.4". Climax volume right into big supply or demand on higher TF's should trigger some options on lower TF's..

[hermes]

Use at least 2 more TFs for confirmation of trade direction. Recommended 4x the time size. Eg. 15M x4 =1H x4 = 4H. Trade would be on M15 but confirm the same trend direction on H1 and also H4. If M15 different direction it could be a retracement. Wait with the trade until pullback on M15 finished.

You can use SMA 50, 100, 200 or all 3 for confirming the trend direction on all charts. And Basta!

Hermes

Edited December 18, 2011 by hermes

[srini]

if i am trading on daily TF looking at 4hrs lower timeframe what other timeframes should look at for trade direction confirmation please is it weekly or monthly ? could you please clarify

[srini]

Trend Following System

Just to outline the system i use(just trade in the direction of M15,H1,H4 parabolic SAR align and ADX>=25)

 

a)PARABOLIC SAR with default settings and ADX(14) with default settings again. If ADX >=25 AND parabolic SAR DOTs are BELOW the price now as soon as SECOND parabolic dot appears below the price on H1 Time frame with M15 and H4 Time frame on the same direction as that of H1 TF then there is a BUY signal on that particular currency pair i.e., M15,H1,H4 aligned all in the same direction

 

b) PARABOLIC SAR with default settings and ADX(14) with default settings again. If ADX >=25 AND parabolic SAR DOTs are ABOVE the price

now as soon as SECOND parabolic dot appears abovethe price on H1 Time frame with M15 and H4 Time frame on the same direction as that of H1 TF then there is a SELL signal on that particular currency pair i.e., M15,H1,H4 aligned all in the same direction

 

STOP LOSS : SECOND DOT ON THE PARABOLIC SAR(ON H1 TimeFrame) - 6 pips

TARGETS/EXIT STRATEGY:

(HIGH-LOW)*0.236 OF ENTRY BAR ----> Trailing Stop once in the trade or the first target

(HIGH-LOW)*0.50 OF ENTRY BAR ------> 2nd Target

(HIGH-LOW)*0.618 OF ENTRY BAR -------> 3rd Target

(HIGH-LOW)*0.786 OF ENTRY BAR ---------> 4th Target

(HIGH-LOW) OF ENTRY BAR ---------> FINAL Target

 

NOTE : ENTRY BAR IS NOTHING BUT THE BAR WHICH WE ENTER AS SOON AS SECOND DOT APPEARS ON H1 TIMEFRAME SUBJECT PARABOLIC SAR DOT ALIGNS WITH M15, H4 TIME FRAMES AS STATED ABOVE.

 

Note: i follow this system only after 15 minutes of US,EUROPE Open

[maddman]

Personally, I don't pay much attention to anything lower then H1 in TF, I consider it noise and dilutes what I am looking at psychologically in a larger picture (TF). I've trashed all indicators (anything lagging is totally worthless) except for Volume and the 3 sma's like Hermes likes for Trend. Indicators: By and Large are for those without confidence to lean upon. Remember, Technical Analysis only works 25% of the time, you have better Odds of Probability of success, by simply flipping a coin. Then at least your at close to 50-50.

Only H1, H4, Daily, and Weekly TF's are for me, with wide stops and don't over leverage your account, and learn "RISK of RUIN" inside and out.

Remember if you maintain a 2:1 Profit to Risk Ratio, and get only 43 Wins out of a 100 trades as an average, you can NEVER LOSE MONEY.

BE SMART, WAKE UP and STOP FOLLOWING FOOLISH PEOPLE...

 

Go Long Term, how do you think Warren Buffet made his money?

 

Good Luck,

Maddman

Edited December 18, 2011 by maddman

[dannydon786]

I only trade 15 min chart......I only look at one chart that is 15 min....because looking at different charts gives one different information.....which is confusing (trend is up in one and down in another - you do not know the trend is up or down) ....and ALSO isn't it boring to look at different charts.........

 

ALSO I hate waiting...15 min gives some good trades...and quick ones too with very small stop loss....3 or 4 trades of 15 pips?? in a few hours is enough.....What do you think???

Edited December 19, 2011 by dannydon786